Valuation of tobacco and tobacco products for the purposes of payment of Basic Excise Duty and National Calamity Contingent Duty (NCCD)

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.... 2022 To, All the Principal Chief Commissioners/ Chief Commissioners of Customs & GST, All the Principal Directors General/ Directors General of Customs & GST Madam/Sir, Sub: Valuation of tobacco and tobacco products for the purposes of payment of Basic Excise Duty and National Calamity Contingent Duty (NCCD) -reg. Representations have been received seeking clarification on the manne....

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....o, preparations containing chewing tobacco, Jarda scented tobacco, Pan masala containing tobacco) and an abatement of 55% on the retail sale price has been prescribed for such products. Accordingly, assuming the retail sale price to be ₹ 100, the basic excise duty and NCCD is computable on an assessable value of ₹ 45. The cumulative basic excise duty (@0.5%) and NCCD combined being 25.....

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.... Therefore, the value for the purposes of GST computation will be the transaction value plus basic excise duty, NCCD and any other amount as prescribed in section 15 of GST Act, 2017 [i.e., in the above example, Value for computation of GST and Compensation Cess "V" = Transaction value as per the GST Act, 2017 + 11.475 (basic excise duty +NCCD)]. Hence, consequent to an increase in NCCD rate (like....

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....49/2008-Central Excise (N.T.), dated 24.12.2008, continues to contain a reference to the First Schedule to the Central Excise Tariff Act, 1985, even though the said Tariff Act has been repealed on introduction of GST. It is argued that this is a legal infirmity. In this context, it is to state that vide section 10 of the Taxation Laws (Amendment) Act, 2017 (18 of 2017), a section 38B has been inse....